3 ms·

AWS didn't undercut anyone. They offered their customers exactly what they wanted. Many of these software vendors have delayed offering their own cloud-hosted v

AWS didn't undercut anyone. They offered their customers exactly what they wanted. Many of these software vendors have delayed offering their own cloud-hosted versions, often years after AWS, even when these vendors should be better equipped at running them. Elastic is also infamous for data loss and still has consensus problems so maybe proper priorities are the real problem.

jeswin 6y ago
There is no meaningful way for an independent vendor to compete with a Cloud Provider offering the same service. It gets bundled in the initial sales pitch, promoted in their documentation and at events, and gets heavily discounted. It simply becomes the default - and (if on AWS) nobody will even think of Elastic after a couple of years.
- Spivak 6y ago
  You compete by not competing. Make your software proprietary and sell it to the cloud provider for hefty license fees.
- manigandham 6y ago
  And yet many companies are competing just fine. Elastic's biggest growth comes from cloud services, which matches every other database vendor from MongoDB to Redis. [1]. AWS just proved that the market wants to buy solutions, not software. There are tons of customers and environments where a dedicated vendor can offer something far better than the lowest-common-denominator that AWS provides. If you want another success story, just look at how Snowflake built a better Redshift on AWS (quite literally). 1. Start at page 23 of their earnings report: https://s2.q4cdn.com/265747582/files/doc_financials/2021/q2/ESTC-Q2-FY21-Earnings-Deck-(POST).pdf https://s2.q4cdn.com/265747582/files/doc_financials/2021/q2/...
- mr_toad 6y ago
  The big three may have some advantages, but there are numerous smaller competitors. The biggest advantage the big three have is that some people don’t even bother looking for alternatives.

3 ms·

AWS didn't undercut anyone. They offered their customers exactly what they wanted. Many of these software vendors have delayed offering their own cloud-hosted v

by manigandham 6y ago

jeswin 6y ago
There is no meaningful way for an independent vendor to compete with a Cloud Provider offering the same service. It gets bundled in the initial sales pitch, promoted in their documentation and at events, and gets heavily discounted. It simply becomes the default - and (if on AWS) nobody will even think of Elastic after a couple of years.
- Spivak 6y ago
  You compete by not competing. Make your software proprietary and sell it to the cloud provider for hefty license fees.
- manigandham 6y ago
  And yet many companies are competing just fine. Elastic's biggest growth comes from cloud services, which matches every other database vendor from MongoDB to Redis. [1]. AWS just proved that the market wants to buy solutions, not software. There are tons of customers and environments where a dedicated vendor can offer something far better than the lowest-common-denominator that AWS provides. If you want another success story, just look at how Snowflake built a better Redshift on AWS (quite literally). 1. Start at page 23 of their earnings report: https://s2.q4cdn.com/265747582/files/doc_financials/2021/q2/ESTC-Q2-FY21-Earnings-Deck-(POST).pdf https://s2.q4cdn.com/265747582/files/doc_financials/2021/q2/...
- mr_toad 6y ago
  The big three may have some advantages, but there are numerous smaller competitors. The biggest advantage the big three have is that some people don’t even bother looking for alternatives.